Xillion Update: April 2023
Below is an update on how things are going with the Xillion incubator, where we will be covering several major topics.
Xillion is doing quite well at the moment. We have achieved significant progress for every project incubated at the moment, and have been achieving consistent growth every month since the incubator's operations began.
In this update for token holders, we will cover the progress of every project we have incubating at the moment, as well as some technical aspects (migration update and more). So, have a great time reading that!
[ Our Vision ]
As you all know, XIllion is a Web-3 incubator, which means that the only business-aligned initiative of the company is to build/incubate/grow its products and companies, while achieving the main goal of making them all successful.
Therefore, the main utility of XIL as a native token of the incubator is to provide its holders with access to all of those projects in the form of free and discounted tokens as well. By simply holding only one asset - the XIL token, you are building a well-diversified portfolio of different companies for free.
Even if some of the companies we incubate will not become super successful, you will be in a good profit margin since you have spent $0 on buying their tokens (getting them for free because you’re a holder of XIL token). Isn’t that perfect? We think it is.
As you know, we as an incubator distribute around 2.5% - 5% of the total supply of each project for free among XIL token holders who stake. For example, for AllSet we provided around $300,000 in AllSet tokens for free as a reward for XIL holders. This is a great reward for token holders.
If you are wondering how incubators work in general, then to better understand the model you could check how the World’s most famous incubator Y Combinator operates. They have successfully incubated many billion-dollar companies for the last 10 years.
The difference in our approaches is that Xillion is more involved on an operational level. We are incorporating the Private Equity firm approach into a traditional incubator’s model, which means that we build and manage the companies we are incubating to make sure their chances to succeed will be significantly higher.
This is why we say we are an Incubator and Private Equity firm. We have taken the best sides of both models, combined them, and added our secret sauce with application to the Web3 Market.
A general model of incubators is to have 10-20 projects in the cohort and hope that 1-2 will be a tremendous success, where those 1-2 will be doing relatively well and the rest will more likely close their business.
This way they anyway will generate a sufficient return to not only pay for not-so-successful companies but also gain a great profit. However, we are trying to do it differently by increasing the success rate of the companies in our incubator to make sure that at least 50% of them might be considered comparatively successful companies. So the potential profit will be way higher as well.
That is why we take 3-5 projects (the first cohort is currently AllSet, Amplify, L2E, and HedgeAI) and get involved in building and managing them.
It’s too early to make conclusions, but we could say that this approach works quite efficiently at the moment. With a 5-7x ROI that L2E has delivered to all of its users, or perfect passive profit of 18% / 3 mo of HedgeAI, as well as a growing number of partnerships - successful pilots and rapid development of AllSet and Amplify. We could say the model works well.
As we all understand, the success of the incubator, and in our case the XIL token as well, depends mainly on the success of the companies we are incubating. This is the only utility for the token and a business line for the company. That is why our main focus is on properly building and scaling the companies we incubate to deliver the highest possible return to the incubator and all the token holders.
Many of our token holders, especially those who are entrepreneurs themselves, understand that building a company is a time and resource-consuming process, and you need to allocate resources in the best possible scenario of 1-2 years to achieve the first good results with the companies you incubate and build. But, as you could see, we are ahead of that schedule with all of our products, and 50% of them are already generating real returns for our users.
So, we are committed to delivering great results for all of the projects we work on, even understanding that in the long run, some of them might be successful and some might not.
This is the reality of how the market works, and there are no incubators where 100% of projects incubated are successful. To note, 10-20% is considered to be a great success rate for even top-3 Incubators and VC firms such as Y Combinator, A16Z, or Sequoia.
Every user who wants to get into any of the projects needs to understand that there’s no guarantee that this particular project will become successful. Because, usually, 90% of startups fail. That’s how that market works, and that’s why Venture Capitalists are making dozens of bets to make sure 1-2 of them will work out well.
Our job as an incubator is to make sure we have done everything to build them properly. This involves marketing them sufficiently, managing them efficiently, and achieving the goals we set for those projects (even if there's a probability that some of them might not become successful).
Currently, our main focus is on building AllSet, Hedge, Amplify, and L2E. The progress we have achieved so far is quite good, so let us walk you through all of those companies one by one!
[ Projects ]
[ L2E ]
It is an EdTech platform that allows users to learn new things, and earn great rewards for doing so. This product is accessible via a special NFT called Hodling Bull.
Hodling Bull was available for the XIL token and the price was around $200 per 1 NFT. All the users have already received around $1,000 in rewards (in USDC) each, which makes it a 5x realized ROI, without even selling an NFT.
So if we count an NFT price, then it’s around 7X ROI. The best sign is that nobody wants to sell their NFTs, because currently, L2E is hosting quizzes monthly with at least $50 in rewards per quiz, that’s btw a 20% ROI per mo or 240% per year (which is simply amazing) - considering that there is not much work for users and it takes 5 minutes per month to make that much.
Those who believed in the project early on have made (and have continued making) a great return on their investment.
To give you an example, imagine you have bought 10 NFTs at the launch, and spent on them $2k in XIL. In this scenario, you would have made $10k in USDC already, and would still be holding your NFTs that are making 20% ROI every month, regardless of the market conditions. Plus the value of your NFTs would be around $4-5k as well (2x the initial one).
[ Amplify ]
What’s an Amplify?
Amplify turns influencers into an asset class. We make it possible to become a shareholder of your favorite creator, athlete, musician, and more!
Imagine you would be able to buy into a % of the revenue that your favorite influencer makes, or find the next Mr.Beast and invest in him early on. Sounds good? We think so as well.
Additionally, Amplify is a SocialFi Platform that not only turns influencers into an Asset Class but also connects brands with a global network of high-quality creators.
Amplify is under development right now. However, even considering this, we are actively onboarding influencers who will be a part of the Amplify ecosystem. Currently, we have influencers with a total of 50MM followers across all of the major social media platforms on board.
Stay tuned for more updates to be released soon!
[ Hedge AI ]
What’s Hedge AI?
Hedge AI is an AI-empowered asset management platform that is designed to provide its customers with a 60%-80% passive ROI per year, with a conservative risk model to make sure our customers will make twice as much as traditional hedge funds offer (with as conservative of a risk model possible and at incredibly flexible conditions such as monthly plans).
This is so that you could enjoy your profit every month, or even withdraw the entire deposit just after 1 month. Compared to other hedge funds, it is up to 12 times sooner.
For the last 3 months of the open beta period, Hedge has delivered 17% in pure profit (after all the deductions, fees, etc.). And, for the 6 prior months (closed beta period) Hedge has delivered 72% of a pure profit.
Currently, 92% of the customers keep using Hedge AI since day one, and 68% of them have increased their deposits by adding more funds under the management.
Hedge is also loved by its customers due to the affordable insurance option that provides all of the customers with full coverage (for just 1% of their deposit amount). This option guarantees that the clients will receive the full amount they deposited no matter what. Currently, 89% of the customers are using this feature.
As a cherry on top, all of the customers can track their investments via a perfectly-looking and informative personal live dashboard, which allows them to check all of the key indicators such as ROI, or the profit they’ve made so far from anywhere in just 2 clicks.
Hedge offers 1-month and 3-month plans. The first option is the favorite among retail investors, and the second one is beloved mostly by institutional investors who are actively testing the platform now.
[ AllSet ]
AllSet is our real-estate platform, where everyone can start investing in real estate for as little as $10, thanks to our fractionalization feature.
Top-10 largest achievements we have made so far:
1. Developed our proprietary AI to search for the best real estate in the market (works with Dubai, New York, California, Texas, and Florida currently.)
How ALL SET AI works
AllSet AI constantly searches for the best options by scanning marketplaces, checking databases of real estate developers and brokers, and evaluating listings by different criteria to find out which one could provide the best value appreciation in 36 months, and is quality rental income.
Effectively, it compares all of the listings with the database of all deals in the city/neighborhood made for the last 12 months and checks how much similar properties are making on Airbnb or via long-term rental (and how their value has changed over time).
This way, we can see the price dynamics and occupancy rates of similar properties (or even the property we are considering).
After checking 53 parameters, our AI ranks all properties by using its own rating system, which scales from 1% to 100% (where 100% is the best possible option). Everything in the range of 85%-100% is marked as recommended and automatically goes to the website so users can buy it as an entire property or a partial share.
As you can see, having all that real-time data allows our AI to scan freely, instantly making its selection process even smoother and more efficient. Therefore, all customers can enjoy a perfect selection of properties that will generate a sizable rental income while growing in value significantly over the next 36 months.
2. Entered the UAE market by Integrating with Dubai’s Land Department to get access to all of the real estate transactions, and established partnerships with more than 20 brokerage firms and real estate developers out there. We are doing a pilot there to build better relationships with local market players and it goes quite well.
3. Entered the Australian market and got $5MM of real estate tokenized in a collaboration with the multi-billion real estate developer Niecon.
4. Expanded to the US market by integrating with the country's largest real estate marketplace Zillow to get access to hundreds of thousands of properties on the market.
5. Launched the YouTube channel about real estate under the AllSet brand where we are covering real estate-related topics to promote the product and build a community of real estate investors around AllSet. We’ve just started it this week, so there will be more progress and updates next month.
6. More than 50MM XIL tokens were staked to participate in our tremendous Rewards Program in the form of AllSet tokens where we are giving away $300,000 in ALLSet tokens.
7. AllSet got 18 mentions in leading reputable business media with a total of 30MM users - including Nasdaq, Yahoo Finance, Seeking Alpha, Entrepreneur, and others.
8. We are negotiating with lifestyle and business influencers with a total of 15 MM followers, to onboard them as ambassadors or at least promoters for AllSet.
9. Technical progress is also moving along well, with AllSet’s development going quite well and an expectation to complete the product and launch in August.
10. We have also negotiated a few new mind-blowing properties for the platform that we will announce within the next few days!
[ Concluding Points ]
To summarize it all, AllSet’s development goes quite well and is ahead of its schedule, there is an obvious need for a product like this, and our bet on that market segment was completely right.
We are getting requests from real estate funds, developers, and brokers almost every week - where most of them want to join the project as partners, investors, and users all in one.
This indicates that the demand is here and that there is a great product market fit.
Our logic here is simple: we want to develop a perfect product first, onboard partners / get inventory, set everything up properly, and then release it (end of July) - and right after, start promoting it actively while onboarding users.
We don’t want to rush and go live with a raw product or with insufficient inventory etc, because it doesn’t make any sense. As history shows, it doesn’t matter who launches first. Most of the market leaders weren’t the first companies launched in their segment. The only thing that matters is the quality of the product and user experience. Therefore, this is where our focus is.
[ Polygon Migration / DEX ]
Currently, we have completed the migration for all of the main projects and we are completing the development of smart contracts that are responsible for connecting those parts.
This involves mostly staking and token-related aspects because XIL will be used in all of the projects as a second native token after their main one.
For example, in AllSet you will be able to use the AllSet token to pay fees, and commissions, get access to some listings, etc, where at the same time there will be a possibility to use XIL.
This is done via a system of smart contracts that regulate and manage the entire process.
Additionally, we are getting ready smart contracts for staking as well. For those pools that were developed by us for example (an Access staking pool), everything is done and tested. But for the third-party solutions (Real VC 1 and 2 staking pools etc.), we need to synchronize it with 3rd party code (which is quite difficult and timely).
In other words, we are migrating not with just one project (which is simple), but instead are migrating with the entire, quite complex ecosystem of 5 products, where some of the projects aren’t even fully built yet (but all of the smart contracts should be completed to migrate).
This is quite challenging, and we have faced many complications on a code level because of this. However, most of them are already solved.
The migration is almost done. To complete it all and test it properly, it will take around 35 business days from today (21st of April).
When it’s done, we will roll out the migration process itself, which will take a few days and will consist of several steps.
- Minting a new XIL token with the exact supply, lock-up period, etc. So, pure 1:1 conversion, no dilution or difference.
- Then we will make this token claimable. On our website, you’ll need to connect the wallet, send your old XIL token and claim a new one right after that (exactly the same amount). For those tokens which are staked right now, the procedure is the same. When your staking ends, you will need to go to the same section on the website and send old tokens and claim new ones. Your wallets will be added to the system in advance, and your allocation of new tokens will be matching your staking balance.
- Then, we will open an opportunity for buying XIL in a DEX way.
[ Problems We Solve by Doing This ]
Migration is a fully technical process and currently, it allows us to solve and improve on several aspects of our product suite. Also, last but not least, there’s only a positive impact because:
- The main features work while we are migrating. XIL is fully active and available on BEP-20 currently, which means you can buy/sell, stake/ transfer and do all the normal actions. Gate.io is the home to 9MM users worldwide, and our partner and investor who supports our activities often. Pretty much everyone can easily buy or sell XIL on Gate.io in just 2 clicks.
- 98% of our trading volume was on Gate.io. Pancake Swap has 1-2% which is around $100-250 in daily volume which is very low. At the same time, Gate provides us with around $10,000+ / day, which is 100 times more. All the price increases usually happen on Gate because most of the volume is there (as well as 98% of the traders). However, all of the unexpected drops are usually happening on PCS, and are made by arbitrage bots mostly.
- Arbitrage bots on Pancake Swap used to frequently drop the token price (due to an insignificant volume on PCS. That’s a significant inconvenience for the projects with not large enough trading volume). That drops the price back and stops other traders from trading it.
- Since February, we’ve seen a trading volume of 100MM XIL on Gate on average every 30 days which is roughly $10,000 - $15,000 a day. One more upside is that we have almost avoided arbitrage bots that were dumping on pancake swap. We have also had around 10 days with some major spikes, (with more than 5 MM XIL traded for 24 hours), and even a few with more than 10MM XIL traded (such as one day which had shown 14 MM, and another one with 28MM tokens traded).
- XIL attracts new traders on Gate.io regularly and serves existing holders there as well. As one more good piece of news, we have several promotional activities for generating more attention from the Gate.io traders' community scheduled for the next several months!
To summarize it all, we will continue to stick to our plan and add more value to the ecosystem every day to build a number one Web3 incubator and provide all of the token holders with a great return.
Thank you all for tuning in, and stay tuned for more news coming soon!
Xillion.one - a Web3 Tokenized Incubator that provides every XIL token holder with free tokens of every project it incubates.
We build projects from scratch and create synergy between them. We combine the VC and PE approach to building companies by growing their value and managing investor capital. We simultaneously operate as investors and founders to amplify the results.
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